Foreign trade and the theory of optimum currency areas. Implications for Poland

Iwona Maciejczyk-Bujnowicz

doi:10.18778/2082-4440.13.01

Authors

Iwona Maciejczyk-Bujnowicz University of Lodz, Faculty of Economics and Sociology, Department of International Economic Relations

DOI:

https://doi.org/10.18778/2082-4440.13.01

Keywords:

Optimal Currency Area Theory, export, import, Poland, European Union, currency exchange rate

Abstract

The paper focuses on one of the aspects of the OCA theory and on a new endogenous approach analysing mutual trade links of the countries in a common currency area. According to Kinnon (1963), a high degree of openness of the candidate countries is a precondition for establishing an OCA. Thus, the area can be created by countries with a high share of exports and imports in their GDP. The more open an economy, the higher the importance of the exchange rate for prices. We reviewed the literature on selected studies on the subject and analysed statistical data describing Poland’s trade in the years 2000–2010 with the euro area and EU member states outside of it.

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